Domenici Votes for Final Housing Market Bill

Press Release

Domenici Votes for Final Housing Market Bill

-- President Expected to Sign Foreclosure Prevention Measure Into Law --

U.S. Senator Pete Domenici today reaffirmed his support for a far-reaching housing market and foreclosure prevention measure by voting for final approval of the package that was crafted to avert further erosion of this segment of the nation's economy.

The Senate on Saturday gave final approval to the Foreclosure Prevention Act of 2008 (HR.3221), which includes the provisions sought by the Bush administration to shore up Fannie Mae and Freddie Mac if needed. The Senate's Saturday vote was 72-13. The President is expected to sign the bill into law.

"This bill, even as far-reaching as it is, will not on its own solve all the pressures on our mortgage and housing market. But I believe it is bold enough to stop the forces that are diminishing the hopes of too many families to keep a roof over their heads," said Domenici, the former long-time chairman of the Senate Budget Committee.

"I think this bill is also necessary for putting in place a contingency plan to sustain our nation's biggest housing programs. The bottom line is that homeownership is a key to who we are as Americans, and we cannot allow this segment of our economy to collapse," he said.

The bill, among other things, provides more than $3.9 billion to help local communities salvage foreclosed assets in their respective areas. It also includes the following major provisions:

• Authorizes the Federal Housing Administration to insure up to $300 billion in refinanced loans for homeowners at risk of foreclosure;

• Provides about $15 billion in housing-related tax incentives, including a $7,500 tax credit for first-time home buyers who meet certain income qualifications;

• Authorizes state and local housing agencies to issue $11 billion in tax-exempt bonds to refinance bad mortgages;

• Calls for stricter oversight of mortgage brokers and establishes stricter disclosure requirements to make loan terms more transparent.

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